Boston Fed President Susan Collins said on Bloomberg TV that while U.S. growth has shown signs of slowing, the “overall economic fundamentals are relatively solid.” She argued policymakers cannot wait until all uncertainty clears before acting and must carefully weigh the Fed’s dual mandate.

She emphasized policymakers “cannot wait until all of the uncertainty is behind us,” and must instead weigh both sides of the Fed’s mandate.

“If we start to see worsening labor market risks relative to inflation, starting to dial back the restrictiveness would become appropriate,” she said.

Chicago Fed President Austan Goolsbee struck a cautious tone, telling Bloomberg TV that while next month’s FOMC meeting is “live,” the recent pickup in services inflation has made him hesitant about supporting a rate cut.

He pointed to the latest CPI report, where services costs accelerated in a way “probably not driven by tariffs,” calling it a “dangerous data point” for Fed’s inflation fight.

In contrast, Boston Fed President Susan Collins signaled a greater willingness to cut rates soon, telling the Wall Street Journal she could back easing as early as September. Collins emphasized that higher tariffs could weigh on consumer purchasing power and ultimately weaken spending, while also warning that labor market risks are becoming more visible.

Collins acknowledged that she expects inflation to keep rising through the end of 2025 before easing again in 2026, but still viewed the risks to growth and employment as important factors that justify keeping the option of cuts on the table.

Cleveland Fed President Beth Hammack signaled little appetite for near-term easing, telling Yahoo Finance that if the FOMC were meeting tomorrow she “would not see a case for reducing interest rates.” She stressed that inflation has been “too high for the past four years” and it’s been “trending in the wrong direction” currently, justifying a stance that remains “modestly restrictive.”

Hammack noted that the economy has so far shown resilience, with no significant signs of downturn that would warrant easier policy. Instead, she emphasized the Fed’s responsibility to ensure inflation expectations remain anchored, cautioning that premature cuts risk undermining that effort.

On tariffs, Hammack flagged that their effects are only beginning to filter through. Typically, it takes “three to four months” for the first signs to emerge, meaning the bulk of the impact will not be seen until 2026. She expects further pass-through of higher costs next year, adding another reason to proceed cautiously on easing.

Atlanta Fed President Raphael Bostic reiterated that his outlook for monetary policy remains centered on just one rate cut this year, consistent with guidance he has offered since early 2025. While Bostic emphasized he is not “stuck on anything,” he noted that forecasts carry wide confidence bands in the current environment of heightened uncertainty.

He pointed out that inflation has been moving “sideways” in the 2.5–2.8% range for much of the past nine months, persistently above the Fed’s 2% goal. This suggests progress on disinflation has stalled, keeping policymakers wary of easing too early. At the same time, the unemployment rate remains historically low, though cracks in the labor market are beginning to appear.

Bostic acknowledged the downward revisions to May and June payrolls as a sign of “lot less robust job creation,” though he cautioned against reading too much into one data point.